LAPO Microfinance Bank has announced expanded partnerships with international and local organizations, including the International Institute of Tropical Agriculture (IITA), Water.org, and the International Finance Corporation (IFC), to advance environmental, social, and governance (ESG) initiatives and deepen its sustainability impact across Nigeria.

The bank’s engagement in sustainable finance began with a $12 million credit line from the African Development Bank between 2014 and 2015, which supported the introduction of solar lighting solutions to off-grid, low-income households. According to LAPO, this initiative particularly benefited female-headed rural households while promoting financial inclusion and reducing dependence on fossil fuels.

Between 2015 and 2021, LAPO collaborated with IFC, receiving a ₦2 billion capital infusion and advisory support on ESG-aligned governance. The bank established a digital roadmap to expand client reach and mainstreamed its Environmental and Social Management System (ESMS), embedding climate risk mitigation platforms into core banking solutions to de-risk its portfolio for over six million customers.

In 2024, LAPO signed a memorandum of understanding with IITA to plant 3,500 trees in Ogun and Oyo States, including 34 species with medicinal and economic value.

“We have planted 1,500 trees in Ado-Awaye and another 1,000 in Pade, Oyo State, and trained 20 women on organic manure composition and vegetation propagation,” LAPO stated. The bank also distributed agricultural toolkits to support community-level vegetation efforts.

Water.org contributed a $200,000 grant in January 2025 to expand LAPO’s Water, Sanitation, and Hygiene (WASH) programme, with a national rollout planned across Nigeria’s six geopolitical zones. The initiative aims to provide clean water, sanitation facilities, and behavioral change programmes to promote health and dignity in daily life.

LAPO also announced a new recycling initiative launching in August 2025, establishing 15 waste recovery hubs—five in Edo State and ten in Lagos—to promote circular economy practices and create jobs.

The bank’s broader ESG efforts include education, health, and gender empowerment. Since 2008, LAPO’s scholarship program has awarded ₦612.7 million to over 4,000 students, with ₦65 million disbursed to 185 students in 2024 alone. Health programmes trained over 48,000 clients on reproductive health, youth development, and social awareness.

Gender-focused initiatives in the first half of 2025 included onboarding over 84,000 female clients and providing financial literacy to 2,000 women and youth. Partnerships with SHEALS wellness initiative and Manners & Conduct supported women-led small businesses and leadership development, while collaboration with TARFS Foundation and Bright Achievers School provided menstrual hygiene kits to underserved girls.

LAPO stated that its operations align with the Nigerian Sustainable Banking Principles and international frameworks such as the International Financial Reporting Standard (IFRS), directly supporting several UN Sustainable Development Goals, including poverty reduction, gender equality, clean water, affordable energy, industry innovation, and climate action.

Since inception, LAPO has disbursed over ₦1 trillion in micro-loans, primarily to women and youth entrepreneurs. The bank also partners with renewable energy companies, including D.Light Solar, Lumos Solar, and Oando Gas, providing 734,974 loans totaling ₦18.5 billion for solar and clean energy solutions. Housing initiatives such as Easy Home, My Own Home, and Better Home projects have disbursed over ₦32.4 billion to improve access to quality homes.

Through these efforts, LAPO Microfinance Bank aims to integrate financial inclusion with environmental responsibility, positioning itself as a key player in advancing sustainable development across Nigeria.